Sophos MSP Connect Scott Barlow VP, Global MSP May 9, 2016

Global MSP Market 100k+ MSPs $229B by 2020 Cloud/Hosting Break-fix VAR/Reseller MSP Cloud/Hosting MarketsandMarkets predicts that the global managed-services market will grow from $107B in 2014 to $193B by 2019 In CompTIA’s study, 64% of end user organizations said their businesses are currently using an MSP for at least one operational function 100k+ MSPs $229B by 2020 Channele2e New IT Economics Data privacy & security biggest concerns Reduction in on-premises & data center infrastructure Rapid adoption of mobile, cloud & big data Outsourcing to MSP decreases costs & increases operational efficiency

MSP Connect at-a-Glance ONE Security Vendor ONE Management Dashboard ONE Flexible Program Sophos.com/MSP

ONE Security Vendor

Sophos MSP Connect Program Simplifies customer management of industry-leading security solutions while streamlining key tools integration, and offering flexible pricing and billing ONE Simple Security Solution More control Sophos Central Cloud Based Management Better Visibility Choose annual termed licenses or monthly Increased flexibility Endpoint, Server, MDM, Mobile Security, Cloud Web Gateway, XG Firewall Future: WiFi, Email Best of Breed Products

Secure the Endpoint (PC/Mac) Secure the Mobile Device MSP Connect Portfolio Secure the Perimeter Ultimate enterprise firewall performance, security, and control Secure the Endpoint (PC/Mac) Next Gen Endpoint security to prevent, detect, investigate and remediate Next-Gen Firewall /UTM Next-Gen Endpoint Protection Secure the Web Advanced protection, control, and insights that’s effective, affordable, and easy Secure the Mobile Device Secure smartphones and tablets just like any other endpoint Web Security Mobile Control Network Enduser Secure the Email Email threats and phishing attacks don’t stand a chance with transparent email filtering Secure the Servers Protection optimized for server environment (physical or virtual): fast, effective, controlled Email Security Server Security Secure the Wireless Super secure, super easy Wi-Fi Protect the Data Simple-to-use encryption for a highly effective last line of defense against data loss Wireless Security SafeGuard Encryption Future release

Focused on the MSPs Bottom Line Increase Revenue Upsell and cross-sell security services Add additional products to MSP menu of offerings Increase profitability through aggregate billing Lower Costs Reduce vendor management time and resources Improve security posture with Synchronized Security Convert from Capex to Opex Improve Operational Efficiency Integration into MSP Vendor Ecosystem Single dashboard to manage endpoint and network security On-demand configuration to add customers at your leisure

ONE Management Dashboard

CONTROL SERVICE VISIBILITY

Sophos Central Visibility – Subscription, usage and alerts Control – Customer and license management Service – Security incident management

Management Dashboard

Management Dashboard

MSP Alerting Across Managed Customers Aggregated alerts allows partners to see all alerts across the customers that you currently manage, limited resolution capability but more coming up in the future Note: Firewall alerts are not yet integrated – planned for the future

MSP Centralized Management Over all view across your customers – who is using what and who is trialing Single pane of view for your business status and opportunities such as cross sell, up sell, trials and renewals Launch Customer Dashboard – will you take to your Customer’s Cloud Dashboard (if you are a MSP and allowed to manage that customer) All the white space, you see there, shows the more products that you could offer to your customers. You can click on the product link to learn more about these products License deployed and in use Customer trial in progress Virtual licenses deployed License has expired License usage over limit License near expiration

MSP Centralized Management Usage info for all the managed customers who are in monthly usage based billing . There are two groups of managed customers – 1. Where partners owns the licenses and offers monthly usage based billing 2. Customer purchased licenses through the partner, but asked the partner to manage the security for them “Partner Owned Licenses” shows the usage info across all the managed monthly usage based customers. Usage info for all the managed customers who purchased termed licenses and enabled partners to manage the security for them. “Customer Owned Licenses” show usage across customer purchased term licenses, but managed by the partner.

MSP Trial Licenses Partner can start a new Sophos Cloud trial for a customer. See all the trial customers in one place. Partner can convert a Sophos Cloud trial into customer purchased term licenses or add them to monthly usage based billing model

MSP Trial Licenses Partner can start a new Sophos Cloud trial for a customer. See all the trial customers in one place. Partner can convert a Sophos Cloud trial into customer purchased term licenses or add them to monthly usage based billing model

MSP Trial Convert to Paying Partner can start a new Sophos Cloud trial for a customer. See all the trial customers in one place. Partner can convert a Sophos Cloud trial into customer purchased term licenses or add them to monthly usage based billing model

ConnectWise Integration Partner can connect Sophos Cloud Partner Dashboard to their ConnectWise PSA system for billing integration. Click on PSA integration button to start the initial setup

PSA Integration: ConnectWise Partner can connect Sophos Cloud Partner Dashboard to their ConnectWise PSA system for billing integration. Partner enters their ConnectWise credentials and API keys to connect

PSA Integration: ConnectWise Partner can connect Sophos Cloud Partner Dashboard to their ConnectWise PSA system for billing integration. Partner maps their Sophos Cloud customers to the correct ConnectWise customer id and Agreement.

Dedicated MSP Support Support Dedicated MSP Lines: Talk about MSP support here – Dedicated MSP support for partners – Telephone and email

Co-Branded Marketing Assets and Training

Sophos Central -- Firewall License Management

Hardware Ordering Hardware must be purchased up front – monthly pricing not available Hardware follows our normal ordering and discounting policies and processes Discount for HW is determined by the MSP’s Partner Level in the standard Sophos Partner Program. If the MSP is a Gold Reseller, they will get the standard Gold discount Deal Registration is allowed for hardware orders and term licensing Standard rules apply

ONE Flexible Program

MSP Connect Benefits On-boarding & Technical Support Simple security for MSPs Centralized Management On-boarding & Technical Support Flexible Licensing Options Simple Security for MSPs Based on Sophos Central Security services for: Endpoint, Server, Web, Mobile and Devices (XGFW) Future: Sophos Wi-Fi Standard, Sophos Email Protection, SMC and more! Centralized Management Through Sophos Central Integration with ConnectWise for billing Partners can distribute licenses when and where their customers need them Sophos Central-Partner provides visibility across all solutions and customers in one view On-Boarding and Technical Support Sophos Central Sales Consultant & MSP Sales Consultant training and certification Co-branded marketing assets 24/7 MSP Connect VIP support MSP Connect with Flex: Monthly Usage-Based Billing Add new customers on-demand and upsell/cross-sell new services easily Monthly aggregate billing aligned with the MSP procurement method 24x7 MSP Flex support with a dedicated Technical Account Manager (TAM)

The Journey to MSP Connect Sophos & Distributor approval for monthly billing Flex Training: MSP Sales Consultancy Training Certified Support Training (recommended) Prerequisite Training: Sophos Central Sales Consultant Training Synchronized Security Training Module MSP Connect application approval Proven managed services business ---------- Additional Flex Requirements ---------- ---------- MSP Connect Requirements ----------

Monthly Billing in Arrears MSP Connect Flex Consolidated Usage Monthly Billing in Arrears Volume-based Discounts Let’s start with the usage-based pricing, licensing, and billing that really aligns with the way MSPs want to work with their vendors. We have very competitive pricing, but the best part is, it’s completely usage based, based on actual consumption, so you just manage how many users are being protected with each product, and Sophos takes care of the rest. As we saw in the previous section, the licensing is split into four groups, and the billing model aligns with these. The billing is pay-as-you-go, and the self-provisioned licensing allows you to onboard customers and turn services on and off instantly. If you’re an MSP Connect partner, you buy your customer licenses on a 1, 2 or 3-year term, and will be billed accordingly. If you’re at the Flex level, then monthly billing changes this; we’ll look at that on the next slide. And to top it all off, we reward growth by offering discount tiers within the product groups. On Demand Configuration

Increased License Flexibility Annual Term Customer Owned Customer Managed Annual Term Customer Owned Partner Managed Monthly MSP Owned MSP Managed

Secure the Endpoint (PC/Mac) Secure the Mobile Device MSP Connect Portfolio Secure the Perimeter Ultimate enterprise firewall performance, security, and control Secure the Endpoint (PC/Mac) Next Gen Endpoint security to prevent, detect, investigate and remediate D U Next-Gen Firewall /UTM Next-Gen Endpoint Protection Secure the Web Advanced protection, control, and insights that’s effective, affordable, and easy Secure the Mobile Device Secure smartphones and tablets just like any other endpoint U U Web Security Mobile Control Network Enduser Secure the Email Email threats and phishing attacks don’t stand a chance with transparent email filtering Secure the Servers Protection optimized for server environment (physical or virtual): fast, effective, controlled U S Email Security Server Security We briefly mentioned earlier the products that are available to MSPs, all of which are managed via Sophos Central. [Click] There are 5 products available today within the Network and Enduser families, ranging from firewall and web to secure your network, and endpoint, mobile and server to secure your devices. Furthermore, later this year, email, wireless and data protection will join the mix, meaning you’ll be able to offer a complete suite of protection to your customers. These products are split into four groups in the context of the MSP program; Licenses, Devices, Servers and APs. These groups help support billing calculations, which we’ll look at a bit later, but first, we’ll take a look at each of the product groups. Click Next when you’re ready to continue. Secure the Wireless Super secure, super easy Wi-Fi Protect the Data Simple-to-use encryption for a highly effective last line of defense against data loss W Wireless Security SafeGuard Encryption U Future release U Users D Devices S Servers W Wireless

Pricing Band Calculation User Licenses: Endpoint, Mobile, Web 1 -99 user licenses 100-499 user licenses 500-999 user licenses 1,000-4,999 user licenses 5,000-9,999 user licenses 10,000+ user licenses Device: SFOS FullGuard and EnterpriseGuard 1-24 devices 25-99 devices 100-199 devices 200 -499 devices 500-999 devices 1,000 + devices Server Licenses: Standard and Advanced 1 -24 server licenses 25-99 server licenses 100-249 server licenses 250-499 server licenses 500-999 server licenses 1,000 + server licenses Wireless: Cloud Wi-Fi Standard (AP15, AP55, AP100) 1 -24 Wireless APs 25-99 Wireless APs 100-199 Wireless APs 200-499 Wireless APs 500-999 Wireless APs 1,000+ Wireless APs We mentioned discount tiers a couple of minutes ago; shown here is the pricing and banding structure for the MSP Connect program. The products are split into four groups, as we’ve already seen, and within these groups are license bandings. Your overall usage per month is calculated based on how many of each type of license all of your customers are using, which then rolls up into an overall license count per group. This makes your billing really simple, and your costs easier to predict and manage. We’ll look at an example to illustrate this; click Next to continue, once you’ve reviewed the information on this slide.

= Licensing Example 180 User licenses 25 Server licenses 5 Wireless 80 Endpoint 50 Mobile 180 User licenses 25 Server licenses 5 Wireless 2 Devices = 50 Web Customer A 25 Servers Let’s consider 4 customers, all managed by the same MSP. We’ll call the MSP “Frost Protect”. Customer A is using all of the supported products, which when tallied up to the four product groups, gives 180 licenses, 25 servers, 5 APs and 2 devices. 5 Wireless 2 XG FullGuard

= Licensing Example 150 User licenses 5 Server licenses 2 Wireless Customer A 180 User 25 Server 5 Wireless 2 Devices 130 Endpoint 10 Mobile 150 User licenses 5 Server licenses 2 Wireless = 10 Web Customer B 5 Servers The next customer, B, is slightly smaller, and so doesn’t need so many licenses, or even a firewall. Hopefully they have another solution in place! Their usage totals up into 150 licenses, 5 servers and 2 APs. 2 Wireless 0 XG

= Licensing Example 300 User licenses 10 Server licenses 5 Devices 5 Wireless 2 Devices 100 Endpoint Customer A 100 Mobile 150 User 5 Server 2 Wireless 300 User licenses 10 Server licenses 5 Devices = 100 Web Customer B Customer C 10 Servers Customer C is a larger company, with lots of devices, servers and firewalls, but no need for Wi-Fi at the moment. In total, they use 300 licenses, 10 servers and 5 devices. 0 Wireless 5 XG EnterpriseGuard

= Licensing Example 230 User licenses 5 Server licenses 4 Devices 5 Wireless 2 Devices 230 Endpoint Customer A 0 Mobile 150 User 5 Server 2 Wireless 230 User licenses 5 Server licenses 4 Devices = 0 Web Customer B Customer D 300 User 10 Server 5 Devices 5 Servers The final customer, D, has a lot of endpoint devices, but no need for mobile or web protection. They consume 230 licenses, 5 servers and 4 devices. Customer C 0 Wireless 4 XG FullGuard

= Licensing Example MSP Aggregate 860 User 45 Server 7 Wireless 2 Devices MSP Aggregate Customer A 150 User 5 Server 2 Wireless = 860 User 45 Server 7 Wireless 11 Devices Customer B 300 User 10 Server 5 Devices To calculate the overall usage for the MSP, all of the customer usage is added up, which gives the figures shown. This is their total monthly usage. Click Next to continue, and we’ll look at what this means for license banding. Customer C 230 User 5 Server 4 Devices Customer D

Band Calculation 860 User 45 Server 7 Wireless 11 Devices User Licenses: Endpoint, Mobile, Web 1 -99 user licenses 100-499 user licenses 500-999 user licenses 1,000-4,999 user licenses 5,000-9,999 user licenses 10,000+ user licenses Devices: SFOS FullGuard and EnterpriseGuard 1-24 devices 25-99 devices 100-199 devices 200 -499 devices 500-999 devices 1,000 + devices 860 User 45 Server 7 Wireless 11 Devices Server Licenses: Standard and Advanced 1 -24 server licenses 25-99 server licenses 100-249 server licenses 250-499 server licenses 500-999 server licenses 1,000 + server licenses Wireless: Cloud Wi-Fi Standard (AP15, AP55, AP100) 1 -24 wireless APs 25-99 wireless APs 100-199 wireless APs 200-499 wireless APs 500-999 wireless APs 1,000+ wireless APs If we look back to the pricing bands with these overall figures in mind, we can see that 860 Licenses, 45 Servers, 17 APs and 11 Devices puts them in the bands that are highlighted. These bands then determine the per-license cost that you will be charged. As a clear extension of this, if you subsequently add on more customers or product usage, then you’ll benefit from the existing pricing band that you’ve reached, lowering your per unit costs for new consumed licenses.

Who Does What? MSP Sophos Distributor* MSP Legal relationship with MSPs MSP training and certification Synchronized Security Level 2 Support to MSP DISTRIBUTOR MSP Distributor* Handles hardware logistics Provides MSP terms Invoices MSPs Pays Sophos MSP MSP Level 1 Support to customer Provisioning and configuration Invoices customers Buys via distribution CUSTOMER CUSTOMER CUSTOMER * Except for UK

MSP Connect Application Complete MSP Application sophos.com/msp Sales will contact you to review application Upon approval, access training and certification

MSP Connect Recap ONE security vendor to deliver endpoint and network solutions to customers ONE management dashboard that enables visibility into all security licenses and customer information in one view, eliminating the need for multiple tools and management resources ONE flexible program to simplify accounting and operational processes and to help you manage your budgets efficiently

Sign-up today: sophos.com/msp